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November 30, 2007 |
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GRUPO MEXICO: Coal-Fired Project Needs Up to US$600MM Investment Grupo Mexico SA, de C.V.'s international relations vice president Juan Rebolledo told Business News Americas that construction of the firm's 450-megawatt coal-fired project will require an up to US$600 million investment. According to BNamericas, Grupo Mexico received offers from firms who want to construct the plant. Grupo Mexico would have specific project details in place for construction at the end of January 2008. Mr. Rebolledo commented to BNamericas, "Then, I think, will be the moment this project begins to move." Mr. Rebolledo assured BNamericas that Grupo Mexico is "practically finished" with project engineering and economic studies. BNamericas relates that Grupo Mexico will build the project in Sonora and is still considering several options within the state. The company already secured pre-authorization for the project from energy regulator Comision Reguladora de Energia. The firm must wait until it can present the entire project to state power company Comision Federal de Electricidad before it secures authorization to connect the project to the transmission network. Grupo Mexico will use the project to lessen power costs at its operations. The firm would consume 90% of the project's "offtake." Construction would take four years to complete, BNamericas states. Grupo Mexico SA de C.V. -- http://www.grupomexico.com/ -- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 29, 2006, Fitch upgraded the local and foreign currency Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to 'BB+' from 'BB'. Fitch said the rating outlook is stable. |
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